Chinese casual menswear company Zuoan says will open further stores in this quarter after posting an increase in revenue for the third quarter.

The fourth quarter will see 42 new store openings, including two flagships, the company said.

The Shanghai-headquartered company reported revenue of US$75.8 million for the third quarter, a rise of 12.1 per cent than the previous year. The increase in revenue was driven by both distributor and direct store sales volumes.

Gross profit margin increased 46.9 per cent primarily due to greater sales from the company’s higher margin self-operated direct stores and flagship stores. Net income rose 0.7 per cent to US$14.8 million.

A total of 49 distributor and sub-distributor stores and two direct stores were opened during the period, resulting in a total of 1289 stores as at September 30.

“We remain optimistic about the long-term growth opportunities in our business and are confident our revenue and profit can continue to grow with the expected recovery of the domestic economy along with our efforts to enhance our distribution network, maximise operational efficiencies and increase our brand recognition,” said James Hong, founder, chairman and CEO.

GB